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Information technology products and services supplier Data#3 has nominated higher costs and global uncertainty as its biggest challenges after rewarding shareholders with a record dividend following its best ever full-year result.

The company has opened offices in Brisbane and Sydney, with another to come in Melbourne before the end of the year, to manage the growing pains caused by a 27 per cent increase in permanent employee numbers to 638 staff. Contractor numbers also rose 27 per cent to 352.

Staff numbers are expected to increase by a further 18 per cent this financial year. Infrastructure costs are expected to rise by 14 per cent.

“The key challenge will be responding to whatever happens globally. We need to be mindful of that because it’s very difficult to see how it could play out positively in a short period of time,” Data#3 managing director John Grant told The Australian Financial Review yesterday.

“We’ve also entered this year with a higher cost structure and won’t get a return until subsequent years, so we’re going to have to generate greater growth in the top line to overcome those costs.”

The Brisbane-based company posted a net profit of $15 million for the year ended June 30, up 37.4 per cent on the previous corresponding period, from revenue that rose 16.5 per cent to $697.8 million. Earnings before interest, tax, depreciation and amortisation was up 30.4 per cent to $21.2 million.

It has declared a fully-franked final dividend of 39¢ a share, to be paid on September 30. The full-year payout of 77¢ is 37.5 per cent higher than the previous financial year.

The stellar result was flagged by management late last month. RBS Morgans analyst Nick Harris described it as the best in the IT sector, highlighting “great yield, top- quality management and improving industry dynamics”. He rates the stock a “buy”, with a 12-month price target of $14.92. Data#3 shares closed down 24¢ at $12.91.

Also reporting yesterday, DWS Advanced Business Solutions posted a 6 per cent drop in net profit to $17.4 million on revenue that grew 3 per cent to $98.4 million. EBITDA was at the upper end of guidance issued in May at $24.8 million.

DWS managing director Danny Wallis blamed natural disasters, state and federal elections and Telstra’s decision to stand down contractors over an extended Christmas period for lower utilisation rates, which dropped 3 per cent to 75 per cent. Its Sydney business also performed below expectations but was still profitable.

The redeployment of contractors following the conclusion of two large Telstra contracts accelerated an increase in the proportion of work DWS for clients in the government and financial services sector.

Mr Wallis said he was bullish about the new financial year after a strong start in July. Chief financial officer Lachlan Armstrong said global conditions were putting pressure on wages but he was confident profit margins could be retained.

DWS previously informed the market that it planned to open four specialist practices to fuel growth. It has announced two, focused on business intelligence and cloud computing, but management did not elaborate other than to say attention would turn to starting another unit in the third quarter.

“If we announced a definitive list of four it would put us in a negative position to negotiate acquisitions,” Mr Wallis said. “If companies are priced correctly there could be acquisitions but we’re not going to play ridiculous prices.”